Problem: For real numbers $t,$ the point
\[(x,y) = \left( \frac{1 - t^2}{1 + t^2}, \frac{2t}{1 + t^2} \right)\]is plotted.  All the plotted points lie on what kind of curve?

(A) Line
(B) Circle
(C) Parabola
(D) Ellipse
(E) Hyperbola

Enter the letter of the correct option.
Explanation: Let $x = \frac{1 - t^2}{1 + t^2}$ and $y = \frac{2t}{1 + t^2}.$  Then
\begin{align*}
x^2 + y^2 &= \left( \frac{1 - t^2}{1 + t^2} \right)^2 + \left( \frac{2t}{1 + t^2} \right)^2 \\
&= \frac{1 - 2t^2 + t^4}{1 + 2t^2 + t^4} + \frac{4t^2}{1 + 2t^2 + t^4} \\
&= \frac{1 + 2t^2 + t^4}{1 + 2t^2 + t^4} \\
&= 1.
\end{align*}Thus, all the plotted points lie on a circle.  The answer is $\boxed{\text{(B)}}.$